demand

Topics: Public utility, Private sector, Government Pages: 6 (2010 words) Published: April 14, 2014
Government and Private Organisations are partners in public services delivery. We will think about whether or not Government is the best organisation to provide public services, or the private or either the non-profit sector by giving the merits and the demerits of each of them. Key Words Public Service is a service provided by government or local government. Private Service provider is a private service provided by private business. Example rail transport is now privately run in most countries with an exception of a few like Zambia. Public sector

Public Services are organisations that are directly run by the National or Local Government. An example of a Public Service include Schools, Hospitals, local parks etc.The Public Sector as it is also known as is used to provide services to the public. Merits

Cost Savings
The public controlled the service and therefore the profit margins are kept low. The costs of using Public Services are covered from the Taxpayer therefore cannot go too much into debt. Cost savings materialize in several different forms but are mainly due to the public accountability of the people in charge. Generally speaking, the public partner’s fundamental drive for economic gain yields it an incentive to continually improve its performance, thereby cutting overall costs. (Salamon, 1987)

Enhancing Public Management
By inviting the private partner in, the public authority can transfer risks and responsibilities over the day-to-day operations of two or more phases of the urban infrastructure project to the private consortium. This frees the public sector to focus on other important policy issues such as regulating, performance monitoring and urban service planning. (Salamon, 1987) Mitigating Risk

The more complex the urban project and the more people involved the higher and more varied the risk becomes. Although a carefully structured public manages risk through a well defined contractual agreement, some risk is unforeseen and therefore difficult to mitigate. In the case of such unexpected risk (or project failure), oftentimes it is the public authority that is left to not only pay for the failure of the risk, but also the emerging costs. (Butler, 2008) Free and non chargeable

All the essential services will be free and will not charge the public to use them examples include: Schools, Hospitals. Therefore, if service is undermined due to a drive for profit, or if there is slow responsiveness to a problem, the result may be a strong public resistance to the private partners and a general distaste for private sector involvement in the urban sector overall. Keeping the public well informed and supportive of the urban project is an on-going challenge for all governments. And since the services are directly controlled by the Government and therefore cannot be used inappropriately.(Butler, 2008) Demerits

All the money that is used comes from the Taxpayer therefore would not be getting best value for money. Moreover, the public sector comprises the economic activities controlled by the government. A legitimate concern is that the public sector is not subject to the discipline of the competitive market and may lack incentives to control costs, provide good quality service and respond to customers’ needs. (Kennedy, 2009) There is less competition for the Private Sector therefore not allowing private sector growth. Government is so much of a monopoly in most service delivery hence takes advantage of that to give poor service example Zesco power supply which has brought about great and mass problems which lenders negative impact to people in terms of blackouts (loadsheding).(Ibid) Some Organisations are very expensive to run and could cause a lot of money being used from taxpayers. Most times civil service becomes too fertile for corruption due to its growth; it becomes too big such that inspection is very difficult. Loss of Accountability

Partnerships are typically governed by a complex web of contracts which...

References: Butler (2008) Privatizing Federal Spending: A Strategy to Eliminate the Deficit. London: Layaly Press
Holtmann A G and Ullmann S G, (1991), ‘Transactions Costs, Uncertainty, and Not-For-Profit Organizations’, Annals of Public and Co-operative Economy
Kennedy (2009) The Stages of the Decline of the Public/Private Distinction. New York: Mc millan
Laura (1999) Better delivery by private sector a comparative study
MacDonald M, (2002) ‘Review of Large Public Procurement in the UK’, HM Treasury, London
Malani A and David G, (2008), ‘Does Non-profit Status Signal Quality?’ The Journal of Legal Studies
Mocan H N, (1997), ‘Cost functions, efficiency, and quality in day care centres’, Journal of Human Resources
National Audit Office, (1988) Department of Transportation, Scottish Development Department and Welsh Office: Road Planning’, London: HMSO, London
National Audit Office, (2003) Construction Performance. Auditor General, HMSO, London
Salamon (1987) Partners in Public Service: The Scope and Theory of Government-Nonprofit Relations
Wolf man (1998) Public Private Partnership. Brooklyn: Fen and company
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